International analyst firm Wood Mackenzie’ global corporate outlook for 2017 forecasts the oil and gas industry to turn cash flow positive for the first time since the downturn, if OPEC production cuts drive oil prices above $55 per barrel.
Tom Ellacott, senior vice president of corporate analysis research at Wood Mackenzie, said: “Most oil and gas companies will start 2017 on a firmer footing, having halved cash flow break evens to survive the past two years. Further evidence of a cautious, U-shaped recovery in investment should emerge.”
In 2017, according to the firm, strengthening finances will still be a top priority for oil companies. Capital discipline, cost reduction and deleveraging will frame corporate strategies in 2017. But 2016 will prove to be the low point in the investment cycle, with confidence boosted by OPEC’s decision to cut production. Read More…
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